How to become a better Investor?

Being an investor can be overwhelming, especially for those who are new to it or who have been investing for years without achieving the returns they desire.

It’s not that people don’t care about investing, but rather that they often lack the knowledge or foundation to get started.

It can be difficult to see the value of setting aside money to invest in the future when it means sacrificing immediate spending. However, investing for the future is crucial.

Make thy Gold multiply – invest wisely

The Richest Man in Babylon

The purpose of this section of the blog is to simplify the investing process by guiding you through the unknown and providing actionable steps to help you achieve your share of market returns. There is a significant amount of investment information out there. I’ve attempted to distill the vast investment universe down to the most important elements.

Whether you’re a beginner, a private investor seeking to improve your investment outcomes, or a seasoned investor aiming to achieve more than just beating or matching the benchmark, there is always room for improvement.

I approach investing with what I like to call the “5 P’s” method. All investors need to understand each stage of the cycle. This platform’s investing and educational component is made up of each of the 5 P’s listed below.

Every P has a critical step in the investing journey. Whether you’re a beginner or early on in your investing journey, starting at the top and becoming aware of each stage will help you master the art of investing.

If you’re not getting the desired returns as a private retail or full-time investor, it’s often because one or many of these areas are out of sync.

The 5 P’s every investor should learn

Being an investor can be overwhelming, especially for those who are new to it or who have been investing for years without achieving the returns they desire. It's not that people don't care about investing, but rather that they often lack the knowledge or foundation to get started. It can be difficult to see the value of setting aside money to invest in the future when it means sacrificing immediate spending but investing for the future is crucial.

Each of the P’s has a dedicated page with several blogs within each section. Here is a break down of what each P represents and what to expect.

🧠 Psychology

The first P is Psychology. This focuses on understanding behaviour, biases, and the pitfalls of investing, particularly the ones that arise from within ourselves. A large factor of investing is driven by emotions. It is important we start here. Managing your emotions effectively can contribute to successful outcomes.

➡️ Learn about Investment Psychology

💡 Philosophy

The second P stands for Philosophy. Answering the questions of why you want to invest and what you want to invest in helps to give direction to your plan. This includes your investment strategy, beliefs, competence, and understanding of markets and the investment universe. Investors often float around markets before they ask “What am I trying to do?”.

➡️ Learn about Investment Philosophy

⚙️ Process

The third P is the Process. This describes how you invest. It is driven by the Why and the What and looks at the stages involved in finding, evaluating and buying great investment ideas. The process is critical as it gives your philosophy direction. All investors need a systematic and replicable approach to investing.

➡️ Learn about Investment Process

🪙 Price

The fourth P is Price. This deals with the valuation of companies. It explains how to determine and evaluate the price of investments. Investors need to have an awareness of the intrinsic value of companies to determine value. If you don’t know the value of something it is hard to know whether it presents a compelling investment opportunity.

➡️ Learn about Stock Valuation

⌛ Portfolio

Finally, the fifth P stands for Portfolio Management. This outlines how to manage and construct a successful portfolio, bringing all the pieces of the puzzle together. This section covers topics such as reasons why you sell, rebalancing and asset allocation. You cannot invest your way out of bad portfolio management.

➡️ Learn about Portfolio Management

🧩 Each stage will shape the next stage…

Your Philosophy and ideologies shape the process that helps you determine value and how to fit this into a long-term portfolio. Understanding each P will help you formulate a winning strategy to stay the course.

Each section will have several blogs related to the topic. My aim is to help investors paint a clear picture to help them put each step it into action.

If you want to understand each stage and improve or brush up on your investing skills, treat it like a “Free Course”. Start at the first P and read your way through every article within each category. This section flows sequentially through each P. Below are a few key blogs to get you started:

Absolute Beginner Investors:

Those already investing:

Additional Investing Resources: